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•Seals partnership with NSDC on sugar project development
From Adanna Nnamani, Abuja
The Nigeria Governors’ Forum (NGF) has resolved to adopt sugar as a strategic driver of industrial development across states of the federation, in a move aimed at boosting local production, job creation and economic diversification.
The decision followed engagements with the National Sugar Development Council (NSDC), which urged the Forum to prioritise sugar projects as part of efforts to end the importation of raw sugar and attain national self-sufficiency in sugar production.
Consequently, the NGF secretariat agreed to classify sugar projects as priority beneficiaries in its engagements with development partners within and outside the country, while also entering into a structured partnership with the NSDC to drive sugar project development at the state level. The partnership will focus on supporting states to prepare and position sugar projects that are investor-ready, facilitating structured engagement among state governments, investors and industry operators, and strengthening coordination around critical enablers such as land access, infrastructure provision and incentive frameworks.
Speaking during the meeting with NGF leadership, the Executive Secretary and Chief Executive Officer of the NSDC, Mr. Kamar Bakrin, pitched the vast investment opportunities in the sugar sector and called on governors of sugarcane-producing states to embrace sugar project development.
He identified 11 states with proven and suitable lands for profitable sugarcane cultivation as Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa and Taraba. Bakrin noted that recent macroeconomic developments have improved the competitiveness and profitability of local sugar production, explaining that “while global sugar prices have remained relatively stable in dollar terms, exchange rate movements have made imports significantly more expensive, thereby enhancing the commercial viability of domestically produced sugar, whose inputs are largely naira-denominated.”
He further stated that Nigeria now has strong operational fundamentals for sugar production, stressing that “the availability of suitable land, water resources, labour and policy incentives positions Nigeria favourably for large-scale sugar investments.”
The NSDC boss disclosed that comprehensive assessments have identified approximately 1.2 million hectares of prime land nationwide suitable for large-scale sugarcane cultivation, even though the country requires only about 200,000 hectares to achieve self-sufficiency in sugar production.
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According to Bakrin, Nigeria’s sugar sector is already a major economic opportunity, noting that “the Nigerian sugar industry is currently worth about $2 billion, while with the African Continental Free Trade Agreement, the market is valued at about $7 billion across Africa.” He added that “the market for sugar by-products alone is worth an estimated $10 billion in Nigeria.”
Speaking on community impact, Bakrin assured that sugar projects promote inclusive development, stressing that the country’s sugar industry does not displace communities but rather, it integrates them into the value chain as partners, workers and stakeholders through outgrower schemes and employment opportunities.
Ssugarcane projects will empower host communities, promote inclusive development and support environmental sustainability,” he stated.
On the commercial attractiveness of the sector, Bakrin cited a model sugar project producing 100,000 metric tonnes annually, noting that “such a project requires an estimated investment of about $250 million and delivers an internal rate of return of approximately 24 per cent.” He added that the projects also generate additional value from ethanol and bio-electricity, further enhancing returns and sustainability.
Also speaking, the Director-General of the Nigeria Governors’ Forum, Dr. Abdulateef Shittu, said many state governments are already engaged, or are keen to engage, in sugar-related investments covering land development, agricultural schemes and agro-industrial initiatives.
However, Shittu noted that unlocking the full potential of the sector requires effective coordination, credible investment frameworks and strong alignment between federal policy objectives and state-level development priorities.
According to him, “many state governments are already engaged or eager to participate in sugar-related investments, but unlocking these opportunities requires effective coordination, credible investment frameworks and strong alignment with federal policy objectives.
“the Forum will ensure that state-level development priorities increasingly focus on sugar project investments, given their strong capacity for rural development and job creation.”
